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Malawi presentation2

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Malawi presentation2

  1. 1. FOSTERING EQUITY AND ACCOUNTABILITY IN THE TRADING SYSTEM (FEATS ) ROLE OF THE MINISTRY OF AGRICULTURE IN THE TRADE POLICY MAKING PROCESS BY MoAFS
  2. 2. PRESENTATION OUTLINE <ul><li>INTRODUCTION </li></ul><ul><li>OBJECTIVES </li></ul><ul><li>APPROACH TO DEVELOPING THE PAPER </li></ul><ul><li>TRADE POLICY MAKING INSTITUTIONS IN MALAWI </li></ul><ul><li>MoA AND TRADE POLICY DEVELOPMENT IN MALAWI </li></ul><ul><li>BENEFITS OF A STAKEHOLDER-WIDE CONSULTATIVE TRADE POLICY MAKING PROCESS. </li></ul><ul><li>MAJOR ISSUES OF PARTICIPATORY PROCESSES IN THE TRADE POLICY MAKING </li></ul><ul><li>RECOMMENDATIONS </li></ul>
  3. 3. 1. INTRODUCTION <ul><li>ROLE OF AGRICULTURE IN MALAWI’S ECONOMY </li></ul><ul><li>Contributes 38% to GDP. </li></ul><ul><li>Employs 85% of workforce. </li></ul><ul><li>Contributes 90% to foreign exchange. </li></ul><ul><li>Government’s aim increase agricultural productivity & profitability </li></ul><ul><li>For equitable household food security, income and employment and sustainable utilization of natural resources </li></ul>
  4. 4. 1. INTRODUCTION <ul><li>ROLE OF AGRICULTURE IN MALAWI’S ECONOMY </li></ul><ul><li>1987 agricultural markets liberalisation, beginning of government company privatization. </li></ul><ul><li>Increase economic efficiency for promoting trade. </li></ul><ul><li>Malawi’s trade performance dismal with a negative visible trade balance. </li></ul><ul><li>Reflects skewed trade benefits between trading partners. </li></ul><ul><li>Formulation and application of trade policies and strategies for equitable distribution of trade benefits. </li></ul><ul><li>Mejn with Cuts implement FEATS to raise awareness for better coherence between development & trade policies. </li></ul>
  5. 5. 2. OBJECTIVES OF THE PAPER <ul><li>Over all objective was to evaluate extent MoA is consulted in trade policy making process in Malawi. Specifically, </li></ul><ul><li>Identified trade policy development stages MoA is involved in Malawi. </li></ul><ul><li>Identified the nature of response of the MoA to new trade policies of the MoIT. </li></ul><ul><li>Outlined benefits of a stakeholder-wide consultative trade policy making process. </li></ul><ul><li>Outlined major issues in the trade policy making process in Malawi </li></ul><ul><li>Made some recommendations on the appropriate trade making processes. </li></ul>
  6. 6. 3. APPROACH TO DEVELOPING THE PAPER <ul><li>Literature based. </li></ul><ul><li>Used literature on trade policy development, trade policies, trade strategies, agricultural policies, agricultural economics and agricultural trade. </li></ul><ul><li>Literature included those from international and domestic trade related organisations. </li></ul>
  7. 7. 4. Role of the MoA in Trade Policy Making Process <ul><li>Trade Policy Making Institutions in Malawi </li></ul><ul><li>The Malawi constitution guides trade policy making process. </li></ul><ul><li>Trade policy legislation </li></ul><ul><li>Support from Act of Parliament </li></ul><ul><li>Subsidiary registration </li></ul><ul><li>MoIT conferred with responsibility to make trade policies </li></ul><ul><li>Tariffs are the main Malawi’s trade measure in the context of its trade policies. </li></ul>
  8. 8. 4. Role of the MoA in Trade Policy Making Process <ul><li>Trade Policy Making Institutions in Malawi </li></ul><ul><li>Other trade measures: SPS, customs inspection and clearance, customs valuation, duties, import taxes, and export taxes </li></ul><ul><li>MoIT also negotiates and implements multilateral, regional and bilateral trade arrangements. </li></ul><ul><li>MoIT does it through MoFAIC </li></ul><ul><li>Other ministries participate through IMCs & Regional Working Groups </li></ul>
  9. 9. 4. Role of the MoA in Trade Policy Making Process <ul><li>Trade Policy Making Institutions in Malawi </li></ul><ul><li>IMCs & RWG include: SADC-NWGN, Agriculture cluster & NWGTP among others. </li></ul><ul><li>IMCs also provide technical expertise and recommendations on multilateral, regional and bilateral trade arrangements. </li></ul><ul><li>SADC-NWGN specifically provides a consultative public/private sector forum for examining the Malawi-SADC trade issues. </li></ul><ul><li>Agriculture cluster examines SPS measures in COMESA and between EU and COMESA countries. </li></ul>
  10. 10. 4. Role of the MoA in Trade Policy Making Process <ul><li>Trade Policy Making Institutions in Malawi </li></ul><ul><li>NWGTP advises government on all trade related legislative and policy matters. </li></ul><ul><li>It also provides a framework for monitoring and evaluating the implementation of Malawi’s trade agreements </li></ul><ul><li>It also provides a framework for ensuring conformity with the agreed rules </li></ul><ul><li>It facilitates consultation and cooperation among the private and public sector parties to promote trade </li></ul>
  11. 11. 4. Role of the MoA in Trade Policy Making Process <ul><li>MoA and Trade Policy Development </li></ul><ul><li>MoA consulted during trade policy diagnostic survey planning. </li></ul><ul><li>It is also consulted at implementation-data collection and stakeholder consultation workshops. </li></ul><ul><li>This helps to assess potential impact of trade policies on agriculture. </li></ul><ul><li>But provides minimal ownership of policy making process to MoA. </li></ul>
  12. 12. 4. Role of the MoA in Trade Policy Making Process <ul><li>MoA and Trade Policy Development </li></ul><ul><li>At formulation/review stage, MoA consulted on Competition & Trade Policies, Export Strategy, SADC & COMESA Market Integration Agenda, AGOA and WTO Policies. </li></ul><ul><li>MoA achieves it by attending IMCs and NWGTP preparatory sessions. </li></ul><ul><li>MoA also responds to interviews on trade policy formulation/reviews by consultants. </li></ul><ul><li>MoA is also a member of the SADC-NWGN and attends all the necessary sessions on trade policy formulation/review it organises. </li></ul>
  13. 13. 4. Role of the MoA in Trade Policy Making Process <ul><li>MoA and Trade Policy Development </li></ul><ul><li>COMESA recent consultation was on Agricultural Trade in Relation to Tariff and Non-tariff Barriers in COMESA. </li></ul><ul><li>A major weakness of the approach has been slow & inadequate feedback from secretariats. </li></ul><ul><li>As for on going EPA discussions, MoA chairs the Agriculture Cluster that reviews SPS measures. </li></ul><ul><li>Thus MoA directs country’s position on SPS measures. </li></ul><ul><li>It also participates in issues that involve food standards handled by the Malawi Bureau of Standards </li></ul>
  14. 14. 4. Role of the MoA in Trade Policy Making Process <ul><li>MoA and Trade Policy Development </li></ul><ul><li>MoA also a member of EPA Market Access & Development Clusters. </li></ul><ul><li>Under Market Access MoA has been involved in revising a list of sensitive products for Malawi. </li></ul><ul><li>ESA sensitive products will be exempted from reciprocal liberalisation to boost their revenue capacities, local agro-industrial development and food security. </li></ul>
  15. 15. 4. Role of the MoA in Trade Policy Making Process <ul><li>MoA and Trade Policy Development </li></ul><ul><li>MoA recent trade policy review consultations in which the MoA participated for WTO was in 2007. </li></ul><ul><li>This was on measures of tariff, customs and legislation. </li></ul><ul><li>And how these affect the productivity of the agriculture sector. </li></ul><ul><li>MoA not served with a copy of report for a comprehensive analysis and provision of feedback </li></ul><ul><li>MoA participation varies from one senior rank to another. </li></ul><ul><li>Both preparatory sessions and consultations are either handled by Assistant Directors, Directors or PS. </li></ul><ul><li>At times these are handled by the minister of agriculture </li></ul>
  16. 16. 4. Role of the MoA in Trade Policy Making Process <ul><li>MoA and Trade Policy Development </li></ul><ul><li>At regional level, Minister of Agriculture is a member of the Council of Ministers of COMESA and SADC. </li></ul><ul><li>These act upon recommendations from the Trade Technical Committees. </li></ul><ul><li>Council of Ministers make recommendations to the Summit of Heads of States. </li></ul><ul><li>Summit discusses, reviews and approves policy proposals for implementation. </li></ul><ul><li>Drawback is COMESA & SADC do not have regional parliament to legislate and register regional trade measures. </li></ul>
  17. 17. 4. Role of the MoA in Trade Policy Making Process <ul><li>MoA and Trade Policy Development </li></ul><ul><li>MoA participates in implementation, monitoring and evaluation of the trade policies through the IMCs and NWGTP. </li></ul><ul><li>IMCs and NWGTP organises regular review sessions. </li></ul><ul><li>Usually such meetings mobilize progress reports from various sectors for consolidation. </li></ul><ul><li>IMC consolidates for SADC or COMESA Annual Summits or Special Progress Review Meeting. </li></ul><ul><li>MoA contributes a chapter to such reports. </li></ul>
  18. 18. 4. Role of the MoA in Trade Policy Making Process <ul><li>MoA and Trade Policy Development </li></ul><ul><li>MoA occasionally makes some self initiatives in developing comments and views on trade policy issues. </li></ul><ul><li>MoA made comments on assigning roles of institutions in the NWGTP. </li></ul><ul><li>MoA submitted comments to the MoIT on the list of sensitive products. </li></ul><ul><li>MoA compiled comments on the development of COMESA Regional SPS Laboratories. </li></ul>
  19. 19. 4. Role of the MoA in Trade Policy Making Process <ul><li>Benefits of a Stakeholder-Wide Consultative Trade Policy Making Process </li></ul><ul><li>Sustains trade liberalisation as frequent interactions enhance understanding of the process. </li></ul><ul><li>Engenders sense of ownership of the policies and programmes. </li></ul><ul><li>Legitimates the policies resulting from process. </li></ul><ul><li>Promotes accountability </li></ul>
  20. 20. 4. Role of the MoA in Trade Policy Making Process <ul><li>Major Issues of Participatory Processes in the Trade Policy Making </li></ul><ul><li>Pressure on technical, time and monetary resources. </li></ul><ul><li>Complex and difficult to manage & operate. </li></ul><ul><li>Little opportunity to build up a relationship of trust. </li></ul><ul><li>Donor driven technical assistances tend to concentrate on donor priorities. </li></ul><ul><li>Inadequate coordination on the part of government institutions. </li></ul>
  21. 21. 5. Recommendations <ul><li>MoEPD should take a leading role by working hand in hand with the sector ministries. </li></ul><ul><li>Technical assistance should be designed to transfer skills and knowledge to government officials and not under capacitating them. </li></ul><ul><li>Strengthen coordination amongst government institutions by putting in place an independent government institution to coordinate. </li></ul><ul><li>Increase capacity through increased human resources, utilization of available human resources and adequate financial resources </li></ul>

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